Janice Dorn, MD, PhD
Neuropsychological Trading Coach
Janice Dorn, M.D., Ph.D., has been a full-time futures trader since 1994. Doctor Janice holds an M.D. in psychiatry and is board-certified by the American Board of Psychiatry and Neurology in general psychiatry and addiction psychiatry. She holds a Ph.D. in brain anatomy. A graduate of Coach University, she is a pioneer market psychiatrist and financial neurobehaviorist. Doctor Janice has written over 500 articles on the financial markets and coached over 600 traders worldwide. She is the Global Risk Strategist for Ingenieux Wealth Management Group, Sydney, Australia.
|
Upside down
Boy, you turn me
Inside out
And round and round
Upside down
Boy, you turn me
Inside out
And round and round...From "Upside Down" sung by Diana Ross, written by Bernard Edwards and Nile Rogers
The opening quotation says it all. I can't think of a better way to describe what has gone on in the markets this week. Volatility has returned and returned with a vengeance, catching quite a few people napping and complacent. Volatility is basically an indicator of emotionality. I call it the lunacy indicator. Judging from the record number of e-mails from traders, it has been just plain upside down screaming roller coaster madness! Commodity traders love this environment, but most stock traders go into "tilt" when confronted with it. A lot of nerves have been shattered with the whipsaw and whiplash, putting even the most skilled traders into what John Lansing jokingly refers to as “The Nut Hut”.
To elaborate a bit more on a comment I made on the trending123.com message board, this is a good time to step back, analyze what you are doing, why you are doing it, rebalance and get rid of laggard positions. In other words, it's time for reflection, perspective and "out with the old, in with the new." It is time to stop doing what is not working for you and focus on what is working. In order to get to this, one must shine a laser light of radically honest reflection onto both himself and his trading style. This sounds simple, but it is not easy. This means "out with the old, and in with the new." It implies change, and change is among the most challenging work we do as human beings as traders. We resist change, even though change is inevitable and necessary for progress.
What is working for you? What is your time frame? Why are you holding and hoping? When do you buy? When do you sell?
Are you using good money management and risk techniques? Are you chasing and ending up buying the highs and selling the lows? How is your personal health and well-being holding up in this environment?
The interesting thing about life outside of the markets is that we tend to focus on what is NOT working. In a way, it's like the old saying that "the squeaky wheel gets the grease." We ask ourselves what and who needs "fixing" and then go about finding ways to make bad situations better. You may be able to identify many of these people, places or things in your own life. After all, if someone is happy, doing well and not complaining, there is nothing to "fix", so we focus on what is broken and set about trying to find ways to make it right again. Please reflect for a moment on the people, places and things who take your energy?
These are the ones that seem to always cry out to be helped, yet they are rarely open to being helped. Their role is that of a victim, and we play into it because of the deep-seated need to rescue.
Unfortunately, this approach does not work for trading and investing success. This is one way in which counterintuitive thinking is productive and profitable. In other words, in the markets (unlike the lives of many of us outside of the markets), we must learn to take what is not working, broken or lagging and get rid of it. We must begin to focus on what actually IS working and make that work better for us. If you are not able to grasp this simple (but not easy) concept, it is likely that you will continue to sell winning positions and hold on to losing positions. As a result, you will continue with drawdown of your mental, emotional, psychological, physical and financial capital. In other words, both you and your portfolio will become as drained batteries, out of energy and with nothing left except more pain. How does that sound to you? Is that what you want from your life and trading?
This coming week, John is taking time to renew himself and to complete work on “out with the old, in with the new" for www.trending123.com. This is one of the rare times during the year that he will not be in the trenches with you day in and day out, calling trades and teaching in his unique and wonderful way. So, if you are tempted to ask where John is during this coming week, please remember this (and spread the word!) John is working to refresh and renew himself and the site to bring you the very best of everything over the coming months. The result of this renewal will be to get rid of what is not working, and focus on what is working. Just as everything John does, this is for the bottom line benefit of each and every subscriber.
I urge you to take this coming weekend and the week ahead to renew and refresh yourself. Let go of what is not working for you, both in the markets and in your life. Come back in a week, with a fresh face, strong body and mind and a new approach to making and keeping money.
We must always change, renew and rejuvenate ourselves; otherwise, we harden...Johan van Goethe
Until next time,
Good Trading and Brain On!
Janice Dorn, M.D., Ph.D.
janice@thetradingdoctor.com
|
